The Effect of R&D Investments on Stock Returns: A Study on Technology and Information Technology Firms in BIST

Özcan M. , Ağırman E. , Yılmaz Ö.

MALIYE DERGISI, no.166, pp.139-158, 2014 (Journal Indexed in ESCI) identifier

  • Publication Type: Article / Article
  • Publication Date: 2014
  • Title of Journal : MALIYE DERGISI
  • Page Numbers: pp.139-158
  • Keywords: R&D Investments, Stock Returns, Panel Data Models, BIST


Returns of the R&D investments are utilised for taking managerial decisions within the firm and also by the investors who think of making investments in the firm. In this study, the effects of the R&D investments made by the technology and information firms which are traded on BIST on the stock returns are investigated with the data of 2000-2013 period. Panel data analysis method is used in the study. According to the results, it is observed that while there has been no causality from R&D expenditures to stock returns, there has been causality from stock returns to R&D expenditures. Error correction model results show that the short term imbalances emerged have been fixed in the long term.